Dunlop CEO warns California tire efficiency rules could raise prices and hurt market

Dunlop Tires' North America President and CEO Darren Thomas criticized Governor Gavin Newsom's replacement tire efficiency program, saying the rolling-resistance standards will raise manufacturing costs that will be transferred to consumers. He expressed doubts about the anticipated fuel-saving benefits and highlighted concerns over safety, durability, and environmental impacts. Thomas pointed out that keeping tires properly inflated can improve efficiency without regulatory intervention.

He warned the policy might hurt smaller producers and foster monopolistic conditions. While the California Energy Commission estimates up to $1 billion in annual fuel savings, Thomas called the regulation overreaching and suggested education over mandates. The debate pits Dunlop and Goodyear against supporters like Michelin and Bridgestone.